Does Inward FDI Promote or Hinder Outward FDI? IJVs in the Chinese Automotive Industry

Ying Liu, Ming Hua Li, Jiangyong Lu, Changqi Wu

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    In this paper we evaluate the mechanisms underlying dynamic linkages between inward FDI and outward internationalization in the Chinese automobile industry. While several studies have examined the relationship between outward and inward investment using empirical data, this is among the first to employ a case study approach to investigate how international joint ventures (IJVs) established between foreign and Chinese carmakers can shape their internationalization speed, proclivity, and degree. We discuss some unique features of carmakers with and without IJVs to elucidate how firms without IJVs may be more driven to expand internationally while firms with IJVs may face constraints from venturing abroad. Our study further delineates strategies for how automakers without IJVs may rely on external growth to springboard back into the domestic car market.
    Original languageEnglish
    Publication date2012
    Publication statusPublished - 2012
    EventSMS Special Conference China: Competing and Cooperating in and for China - Hotel Dong Fang, Guangzhou, China
    Duration: 14 Dec 201216 Dec 2012


    ConferenceSMS Special Conference China
    LocationHotel Dong Fang
    Internet address

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